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Hiring Accountancy Services - Insurance Cover?

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    Hiring Accountancy Services - Insurance Cover?

    A query, in case someone has faced something similar, appreciative of your help.

    I hired an accountant on Upwork to complete some accountancy work before 31st Jan, including calculations for Corp Tax and Self Assessment.
    The freelancer, dissapeared, didn't deliver on any of the tasks by the deadline or produce any tangible evidence and wants to go to arbitration (through the American Arbitration Association) which will incur costs from me higher than the value of giving them half of the original fee. Has anyone dealt with this before, what kind of professional indeminity or protection insurance would cover this legal event?

    Thanks again

    #2
    So, did you check that the person selling their services on Upwork were ACCA or CIMA registered? What due diligence did you do on the person selling their services on a platform whose unofficial byline is "race to the bottom"?

    I would never use Upwork to procure professional services, especially nothing so important as accountancy.

    Anyway, to your point, the person selling services should have the relevant PII in place. I would be very surprised if any insurances you hold would cover this event. Depending on who you bought your insurances from, you may have a general business insurance cover that includes legal expenses but without knowing what insurances you have, it's impossible to say.

    If the person is indeed registered with a UK accounting body, you can make a complaint to them.

    What is their counter claim against you that means they want to go to arbitration over you not paying them?
    Last edited by ladymuck; 27 February 2021, 09:41.

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      #3
      Unless you have an insurance policy of your own to protect you against this, insurance is not the answer.
      You don't claim against another party's PI. You claim against them and they have PI to cover their liability.

      What I'm not clear on is whether you paid them up front or not. You mention half the original fee, why?
      The AAA is probably fine in itself, but I'm not sure what it means if you win (or if you lose).

      For the sake of, presumably, under £200, I'd write it off and leave terrible reviews.
      See You Next Tuesday

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